Meeting the Challenge.
Author | Rock, Robert H. |
Position | LETTER FROM THE CHAIRMAN |
Life has drastically changed for all of us, with a tectonic shift in how we live and breathe. We at Directors & Boards are committed to help you navigate through this unprecedented crisis and guide you toward a revived and renewed future.
In this time of war, boards of directors need to demonstrate leadership. First and foremost, we need to focus on the health, safety and well-being of our families, employees and communities.
Second, we need to demonstrate that we are sharing the pain during this crisis, notably by reducing director fees and by cutting management compensation, particularly CEO pay.
Third, we need to communicate regularly and candidly with all our constituencies, providing clear and honest information regarding what we know and what we don't know.
Fourth, we should mobilize our company and our employees to help ameliorate the current crisis by aiding our communities through charitable donations and community outreach, and, if possible, by supporting our nation in the delivery of critical equipment and supplies through the redesign of production and the repurposing of distribution facilities.
Fifth, we should task management to explore how the crisis has opened up opportunities for new and better ways of doing business, including augmenting online services and remote workforces, doing away with unneeded products and activities, and imagining and innovating new products and services that satisfy current customer needs and anticipate new ones.
Sixth, since social and environmental issues such as climate change, income inequality and public health are staring us in the face, directors should increase their understanding and acceptance of their company's ESG responsibilities.
Seventh, we need to re-evaluate risk, particularly cyber risks, so that we are better prepared for the next attack.
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